2017 (1) TMI 40

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..... he amount received from Indore Dugdh Sangh Manglia. The Original Authority, vide his order dated 31/01/2012 confirmed service tax demand amounting to Rs. 22,67,268/- alongwith interest as well as penalties under various Sections of the Finance Act. When the order was challenged before the Commissioner (Appeals), he set aside the entire demand in the impugned order. Aggrieved by the impugned order, Revenue is in appeal before us. 2. With the above background we have heard Ms. Neha Garg, learned AR for the Revenue and Shri Jitender Singh, learned Advocate for the respondent. 3. The appellant provided services to Indore Dugdh Sangh Manglia as per the agreement entered into with them. In terms of the agreement, the scope of the work involved .....

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..... as held to fall under the above category. The claim of the appellant, which has been upheld by the Commissioner (Appeals), is that there is no agreement for utilization of services of an individual ; but the agreement is for carrying out job work or lump-sum work as entrusted to the appellant for execution for example milk packing, butter packing etc. The rate specified is also on a piece rate for example for packing of milk in 200, 500 and 100 Ml packets, the rate was fixed as Rs. 12/- per thousand packets. The claim of the appellant is that there was no supply of manpower and hence the activity is not covered within manpower supply. 5. Commissioner (Appeals) has approved the view adopted by the appellant in the light of the Tribunal deci .....

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..... e case of State of A.P. v. Kone Elevators India Ltd. (supra) and UOI v. Mahindra and Mahindra in a similar issues. The ratio of all the three judgments of the Hon'ble Supreme Court, is that the tenor of agreement between the parties has to be understood and interpreted on the basis that the said agreement reflected the role of parties. The said ratio applies to the current cases in hand. We find that the entire tenor of the agreement and the purchase orders issued by the appellants  service recipient clearly indicates the execution of a lump-sum work. In our opinion this lump-sum work would not fall under the category of providing of service of supply of manpower temporarily or otherwise either directly or indirectly" 6. In view of th .....

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